IN THIS ISSUE

ALTERNATIVE POWER REPORT

• Geely Prepares 500 Wh/kg Solid-State EV Battery
• Irish Government Launches Development Plan for Data Centers
• Next-gen Zinc-Iodine Batteries Can Charge in 3 Minutes
• Poland Created Hydrogen Bus Demand, but Polenergia Walked Away

DATAPOINT REPORT: 2026 NA Scooter Production

NORTH AMERICA REPORT: End ofComment Period for EPA 2027 Emissions Policy

EUROPE REPORT:

• The Drive Towards Cleaner Marine Propulsion
• Sanlorenzo Reports Strong H1 Results

SOUTH AMERICA REPORT:

• VWCO Truck & Bus Partners with SAIC
• Foton Expands Dealer Network to 77 Locations in Brazil
• São Paulo Secures US$ 500 Million for Electric Bus Adoption

JAPAN REPORT: Labor Shortage Delays Takeuchi’s New Factory
SOUTH KOREA REPORT: Hanwha Completes Medium-Speed Engine Factory
INDONESIA REPORT: SANY Brings Multiple Power Options To Mining Market
CHINA REPORT: Sany’s First EV Heavy Truck Produced in Turkey
INDIA REPORT: Commercial Vehicle Demand Recovers

IN THIS ISSUE

ALTERNATIVE POWER REPORT

• China’s Electric Truck Moment Has Arrived
• $5M Startup Claims Rare Earth-free Electric Motor
• 2030: More Than One Million Worn Out Batteries Likely
• CATL Building Battery Swapping Hubs for EV Trucks
• Laos Used Drastic Approach To Go 100% EV Overnight

NORTH AMERICA REPORT: Daimler Truck Group Plans Two Plants
DATAPOINT REPORT: 2026 North American PWC Production

SOUTH AMERICA/BRAZIL REPORT:

• Volvo Buses Introduces Flex Chassis for Biodiesel Operation
• BYD Adds High Floor Blade Battery Chassis To EV Bus Portfolio
• Scania Targets Bus Market Growth with Super Platform
• Falling Argentine Demand Drives 20% Decline in Brazil Exports

JAPAN REPORT: Yanmar, Hitachi Explore Equipment Collaboration
SOUTH KOREA REPORT: HD Hyundai Heavy Wins US Data Center Power Order
MALAYSIA-INDONESIA REPORT: Diesel Costs Disrupt Palm Harvest
CHINA REPORT: Geely To Acquire 34% Stake in Ford’s Spanish Plant
INDIA REPORT: Auto Expansion Bets on Next Growth Cycle

Jack Prince, Business Development Manager at Power Systems Research, is scheduled to be a Featured Speaker at the 2026 Suppliers Partnership for the Environment Partnership Innovation Summit. The session will be held July 28-29, 2026, at Novi, MI

He will be joining a panel discussion alongside Ricardo to share perspectives on the market trends shaping industrial equipment, commercial vehicles, and power generation.

Drawing from Power Systems Research’s global forecasting and market intelligence, Jack’s portion of the discussion will focus on where growth is occurring, where companies are investing, and how a reliable forecast can help organizations make better strategic decisions.

The session will bring together multiple perspectives on the opportunities and challenges facing our industry. PSR

#Innovation #MarketIntelligence #IndustrialMarkets #PowerGeneration #Electrification #EnergyTransition #IndustrialEquipment

IN THIS ISSUE

ALTERNATIVE POWER REPORT

• New Battery Could Lead To Big Leaps in Performance
• Air Battery Makes Larger Electric Aircraft Possible
• Batteries Can Reshape Shipping Fuels
• Fossil Fuels Are 40% of Freight Shipping Tonnage
• Paving the Way for Lithium-Nitrogen Batteries

TRUCK PRODUCTION REPORT: Q2 2026 PSR Truck Production Index Climbs 11.3%
DATAPOINT REPORT: 2026 North American Hydroseeder Production

SOUTH AMERICA/BRAZIL REPORT:

• Bus Chassis Production Shows Gains Despite Likely Downturn
• Chinese Vehicle Imports Reduce Brazil Exports to Argentina
• Scania Brazil Plant Prepared for Electric Truck Production
• Sany Announces Production Plant in Campinas, Brazil

JAPAN REPORT: IHI Tests Ammonia-Fueled Land-based Engine
SOUTH KOREA REPORT: Government Links Semiconductor, AI Investments
THAILAND REPORT: MHEV Production Investment Approved
CHINA REPORT: XCMG Group, ZF Establish Joint Venture for Ag Macinery
INDIA REPORT: India-UK CETA: A Strategic Opportunity for Auto Industry
PSR REPORT: PSR Provides $2,000 STEM Scholarship

The STEM scholarship is made through the non-profit Eagan Community Foundation, which has donated more than $3 million in scholarships, grants and initiatives to the Eagan community since it was founded in 1990.

Power Systems Research, a global data research and intelligence company, has been providing a STEM scholarship annually to the Eagan Community Foundation since 2013.

“Power Systems Research has been promoting engineering-based research since its founding in 1976,” noted Joe Zirnhelt, PSR president, in discussing the scholarship program. “We believe it’s extremely important to encourage and support STEM education at the high school level.”

PSR also is a major supporter of the internationally recognized Experimental Vehicle Team (EVT) program at St. Thomas Academy in St. Paul, MN, and has supported the Lightning Robotics FIRST teams at Eastview High School in Apple Valley, MN.

Power Systems Research monitors global equipment production in 13 industry segments across 12 countries.  The focus of Power Systems Research in the powered products industry highlights a close tie to STEM, since technologies requiring continued advancements in science, engineering and mathematics are critical elements towards ensuring a thriving industry well into the future.

“Ryan Houth has demonstrated excellence in the classroom, the laboratory, and in his extracurricular activities throughout his high school career,” notes Zirnhelt, “and we’re proud to help fund his collegiate studies and activities.”

During his four years at Eagan High School, Ryan particularly enjoyed his chemistry classes and his extracurricular activities on the swimming team, as a member of several science clubs and as a tutor for students in pre-calculus, chemistry, and history. 

Chemistry was especially appealing to Ryan because, “it really applies to all the fundamentals of life,” he says. “Our entire life is built on chemicals.”

He also works as a lifeguard in the District 196 Aquatics program and the Cascade Bay Water Park in Eagan. “I particularly enjoyed my lifeguard work,” says Ryan, “because it taught me to be assertive with customers without being rude. It teaches responsibility. And it teaches me how to tell kids what they can do and what they can’t do.”

Ryan plans to attend the University of Wisconsin at Madison this fall where he will pursue a double major in biochemistry and Musical Performance. After graduation from UW, Ryan plans to enter dentistry school and possibly join a musical organization, perhaps a jazz band. He hopes to continue his musical involvement because he’s developed a great passion for music after playing in bands for nearly eight years.

Ryan plays the euphonium, an instrument that looks like a miniature tuba but sounds more like a trombone. Ryan’s somewhat humorous description of the instrument: If a tuba and a trombone had a baby, it would be a euphonium.

One of Ryan’s most memorable high school achievements was winning a spot in the prestigious Minnesota Music Educators Association (MMEA) band. “It was a huge accomplishment for me,” he says. Only about four candidates win the euphonium spots in the band out of the more than 20 who apply. 

Of all his activities, Ryan especially enjoyed tutoring. ‘’I really liked doing that,” he said. “Watching students do well in tests makes me really happy, it makes me happy to see them do well, to succeed.”

“It sounds as though you might be headed for a career in teaching,” I suggested.”

“Maybe,” he said. “Maybe.” PSR

IN THIS ISSUE

ALTERNATIVE POWER REPORT

• EV Investment May Be at Risk in Europe
• Electrifying Your Fleet Isn’t Just About Going Green
• Toyota Pulls Plug on Lexus EV
• New Battery Could Last 16 Years Without Capacity Loss
• PV Equipped Vehicles May Cover 80% of Electricity Needs

TRUCK PRODUCTION REPORT: Strict EV Mandates Could Implode Economy
DATAPOINT REPORT: 2026 North American ATV Production
EUROPE REPORT:

• German Market Continues To Struggle
• Exmar Pushes Ammonia-Fueled Maritime Engines
• Beneteau Posts Strong Q1 2026 Results

SOUTH AMERICA/BRAZIL REPORT:

• AGCO Presents Advances in Alternative Fuels Engines
• Randon Exports Semitrailers to Indonesia
• Chinese DFMoto Starts SA Operations with Motorcycles
• Public Funding Program Fails To Halt Brazil Truck Market Decline

JAPAN REPORT: Hitachi Moves Toward Remote Construction Deployment
SOUTH KOREA REPORT: Construction Equipment Exports Move into Strategic Markets
THAILAND REPORT: EV Policy Moves from Adoption To Industrial Absorption
CHINA REPORT: Plan Sets New Energy Goal of 40% Market Share for Heavy Duty Trucks
INDIA REPORT: Biofuels Lead Next Phase of Auto Fuel Transition

IN THIS ISSUE

ALTERNATIVE POWER REPORT

• Zwitterions May Be Key To New Solid State Batteries
• GMG Reports Graphene Aluminum-Ion Energy Density Gain
• A Closer Look at CATL’s New Sodium-Ion Battery
• Three Ways To Get More Critical Minerals Now

TRUCK PRODUCTION REPORT: Q1 2026 Truck Production Index Falls 4.2%
DATAPOINT REPORT: 2026 NA Crawler Production
GLOBAL REPORT: Mack Says MP13 Engine Is EP 27 Compliant
EUROPE REPORT:

• Volvo Trucks Adds Alternative-Fuel Engine
• Industrial Accelerator Act Finalized

SOUTH AMERICA/BRAZIL REPORT:

• Daimler Truck Launches Zarate Plant
• EU-Mercosur Pact May Reshape SA MHV Industry
• Yanmar Announces Brazil Manufacturing Plant

JAPAN REPORT: Komatsu Reports Record 2025 Sales, But Profits Decline
SOUTH KOREA REPORT: Shipbuilders Win $1.1 Billion in Contracts
VIETNAM REPORT: AG Machinery Market Set for Growth
CHINA REPORT: CATL Launches Mass Production of Sodium-Ion Batteries
INDIA REPORT: Toyota-Maruti Realignment Reshapes Auto Industry

By Natasha Werneck
AutoData

High interest rates, weak demand, and the smaller impact of the Caminho da Escola program are dragging down the pace of Brazil’s bus industry

After posting moderate growth in 2025, although below initial expectations, the Brazilian bus market entered 2026 in contraction, recording a pronounced decline in the first quarter compared with the same period last year. Data presented by Anfavea, the association representing chassis manufacturers, show that, despite a punctual rebound in March, the performance of the last three months reinforces a slowdown scenario.

Registrations rebounded and totaled nearly 2,000 units in March, up 50% from February and 9.3% higher than in the same month of 2025. In the quarter to date, however, the result remains negative: 4,400 buses were licensed, representing a 19.6% decline compared with the same period in 2025.

“For the bus market we had projected a 3% decline in 2026 and, through March, the contraction is already above 19%,” says Anfavea president Igor Calvet. According to him, the scenario “is beginning to become concerning,” especially because of the sector’s structural dependence on public programs: “A large part of the market depends on public policy, especially the Caminho da Escola program, which carries a great deal of weight.”

Calvet points out that the situation of the bus market in Brazil exposes an imbalance in this segment: “Public demand is important, but we also need to develop mechanisms to reduce this dependence.”

The weaker performance of the segment is also showing up in foreign trade. Exports fell 53.4% in March year over year and accumulated a 33.5% decline in the quarter. At the same time, production continued on the opposite path: from January to March, 7,600 chassis were manufactured, up 5.9%, highlighting a supply-and-demand mismatch.

A Stabilization Phase

According to PSR, Power Systems Research, the sector is entering 2026 in a stabilization phase after the post-pandemic growth cycle.

“There is a cycle change more than a structural deterioration,” says Priscila Von Zuben Spadine, Data and Forecast Manager. “The level of activity remains high, but there is a loss of momentum, mainly in the domestic market.”

PSR’s projection indicates production close to 27,000 buses and sales around 22,600 units this year, with a moderate contraction: “It is a decline, but still within a high level of activity,” says the consultant, who estimates a 4% to 6% drop in 2026.

In Priscila Spadine’s view, the current movement is still one of adjustment: “This is not about denying the decline, but about putting it into context within a still-elevated level. The bus market is very cyclical and depends on external factors. There is a loss of pace now, but not a structural break.”

At the same time, the consultant draws attention to the mismatch between production and sales: “Production has been increasing, but it is not being sustained by current demand. The reading is one of inventory build-up, which should be absorbed throughout the year.”

High Interest Rates Hold Back Sales

Within the industry, the tone is cautious. For Walter Barbosa, vice president of Mercedes-Benz do Brasil in charge of the Bus Division, the beginning of this year is unlike the historical pattern: “Normally the first quarter is strong for buses, but this year started differently, with a decline of around 20% in registrations.”

He avoids treating March’s performance as a sign of recovery:

“We still cannot say there has been a turnaround. February had few business days and the pace remains uncertain. We need to monitor the next few months.”

According to Barbosa, the macroeconomic environment has been weighing directly on purchasing decisions: “Global economic and political uncertainties are leading customers to adopt a more cautious short-term stance.”

The main obstacle, however, continues to be expensive credit, which discourages investment: “The base rate of 14.75% translates into a final financing cost of 18% to 20% per year. Who can afford that?” he asks. “At this level of interest rates, only those who are forced to renew or who have taken on a new contract make purchases. This postponement behavior is visible. Customers are delaying investments.”

At Marcopolo, the view is that the cycle has been interrupted, but without a drastic rupture, according to Ricardo Portolan, Marketing and Sales Director: “The market had been growing since 2022, semester after semester, and the second half of 2025 was the first in which there was a decline. That interrupts the cycle, but it indicates stabilization more than a sharp drop.”

For the executive, the first quarter confirms this trend: “In addition to stabilization, we had the effect of seasonality. Without the migration of orders from the end of the previous year, the start of 2026 reflected weaker behavior, which is typical for the period.”

Marcopolo is working with the expectation of a 5% to 10% decline in bus sales this year: “To close the year within this range, the market will need to grow over the next quarters, even if the final result remains below 2025.”

Portolan reinforces the impact of expensive credit on business: “There is no cancellation of already closed orders, but there is a postponement in purchase decisions. Customers are delaying larger volumes because of financing costs.”

For PSR, this picture should persist in the short term: “The macroeconomic scenario does not favor a recovery in private demand. High interest rates and uncertainty tend to delay investments,” says Priscila Spadine. She also warns about pressure on operators: “Margins are increasingly tight, which reduces the incentive for fleet renewal.”

Expectation of Slight Improvement

For Roberto Cortes, president of Volkswagen Caminhões e Ônibus, it is still too early to define a trend for the bus market: “We are at the beginning of the year. January and February were weaker, but March returned to a level closer to last year.”

According to him, the sector depends heavily on fleet renewal cycles: “These movements are not linear. Over the course of the year, the market tends to normalize.” Even so, the expectation is conservative: “Today we are working with a stability scenario compared with 2025.”

Cortes also points to credit as the main brake: “With high interest rates, purchases are restricted to those with immediate needs. The math simply does not work.” He also notes that new technologies depend on incentives: “Electric and gas-powered buses need subsidies. Without that, they do not gain scale.”

At Iveco Bus, as indicated by the division’s director for Latin America, Maurício Yamamoto, the scenario is seen as an adjustment after a positive cycle: “The beginning of 2026 reflects postponed purchases, the pace of bidding processes, and the high cost of credit.” Despite this, he sees fundamentals as preserved: “The market remains demanding, with a need for fleet renewal and transportation modernization.”

According to Yamamoto, the expectation is for improvement throughout the year: “As bidding processes and renewals move forward, we may see a gradual recovery.”

Caminho da Escola

In recent years, the performance of the domestic market has been strongly influenced by federal government tenders for school bus purchases: “Caminho da Escola accounts for around 30% of sales and continues to be a relevant support factor,” Yamamoto agrees.

In this sense, the most recent relief came on April 14: after several delays and uncertainties about the continuity of the program that guarantees revenue for manufacturers, the Ministry of Education carried out the tender for 7,470 school buses. In all, thirteen types of vehicles were tendered, with prices ranging from R$459,000 to just over R$1 million per unit, depending on the configuration.

VWCO will supply most of the buses, since it presented the best prices for 6,590 units, or 88.2% of the total tendered volume. Marcopolo/Volare will supply 620 units and Agrale another 260.

Portolan, Marcopolo’s director, reaffirms the importance of Caminho da Escola but without expecting additional momentum: “The program is essential to maintain the market level, not to expand it.”

Holding Pattern

In the foreign market, expectations are also for weakness among chassis and body manufacturers: “After a strong 2025, the trend is for exports to decline, although less intensely. It should not be a growth driver,” evaluates Priscila Spadine of PSR.

Given this set of factors, the consensus is that 2026 will be a transition year: “If we have lower interest rates and maintenance of public programs, the market may sustain itself at a higher level.” Otherwise, the sector should remain in a holding pattern, as Portolan summarizes: “The growth potential exists, but it depends directly on more affordable credit and more favorable financing conditions.” PSR

IN THIS ISSUE

ALTERNATIVE POWER REPORT

• A “Failed Experiment”? Biofuels Under Spotlight
• US Battery Recycler Lands $1.1B Metals Refining Deal
• When Fossil Fuel Supplies Falter, Interest In Renewables Increases
• Oil Crisis Makes Drivers Reconsider Electric

DATAPOINT: 2026 Aerator Production
GLOBAL REPORT: 2026 Global MHCV Production Gains Seen
EUROPE REPORT:

• Volvo Moves into Big Electric Equipment
• KTM Completes Strategic Realignment and Leap into Premium EVs

SOUTH AMERICA/BRAZIL REPORT:

• Import Tax Decision on Buses Is Reversed
• Indian Preet Enters Brazil With Tractor Manufacturing Plant
• Selic Interest Rate Cut Has Limited Impact in Auto Market
• VWCO Tests B100 Soybean Biodiesel in Engines
• GAC Plans Vehicle Production in Brazil

JAPAN REPORT: Yanmar To Build Plant for Marine Hydrogen Engines
SOUTH KOREA REPORT: HD Construction Sets Electric Safety Training System
PHILIPINES REPORT: Power Shortages Boost Reliance on Generators
CHINA REPORT: Zhangxue Demonstrates Strength of “Made in China”
INDIA REPORT: Ashok Leyland Takes Major Step Toward EV Leadership

ALTERNATIVE POWER REPORT

• A “Failed Experiment”? Biofuels Under Spotlight
• US Battery Recycler Lands $1.1B Metals Refining Deal
• When Fossil Fuel Supplies Falter, Interest In Renewables Increases
• Oil Crisis Makes Drivers Reconsider Electric

DATAPOINT: 2026 Aerator Production
GLOBAL REPORT: 2026 Global MHCV Production Gains Seen
EUROPE REPORT:

• Volvo Moves into Big Electric Equipment
• KTM Completes Strategic Realignment and Leap into Premium EVs

SOUTH AMERICA/BRAZIL REPORT:

• Import Tax Decision on Buses Is Reversed
• Indian Preet Enters Brazil With Tractor Manufacturing Plant
• Selic Interest Rate Cut Has Limited Impact in Auto Market
• VWCO Tests B100 Soybean Biodiesel in Engines
• GAC Plans Vehicle Production in Brazil

JAPAN REPORT: Yanmar To Build Plant for Marine Hydrogen Engines
SOUTH KOREA REPORT: HD Construction Sets Electric Safety Training System
PHILIPINES REPORT: Power Shortages Boost Reliance on Generators
CHINA REPORT: Zhangxue Demonstrates Strength of “Made in China”
INDIA REPORT: Ashok Leyland Takes Major Step Toward EV Leadership